The Senate of Canada passed a motion that a Regina MP put forward to remove section 24 of the Saskatchewan Act.

The amendment comes after a disagreement between the Saskatchewan Government and the Canadian Pacific Railway (CP Rail) regarding tax exemptions.

Under the act currently, CP Rail is exempt from certain Saskatchewan taxes due to the capital investments its predecessor made in 1880 to complete the coast-to-coast railway. However, the Saskatchewan government had argued that the expansion ended in 1966 when CP’s current president rescinded the deal in exchange for regulatory changes.

CP Rail is suing the province for $341 million over the clause, as they want a return of the taxes paid since 2002 and a declaration that future taxes are not payable.

Member of Parliament for Regina-Lewvan Warren Steinley brought the motion to parliament initially and said that the next step is for the amended to receive royal assent.

“It’s good news for Saskatchewan taxpayers; the bill should have about 361 million dollars in back taxes that CP was asking to have paid back,” he said. “This motion secures Saskatchewan’s attempt to achieve tax fairness.”